Local business leaders hail bailout plan for autos

Parts supplier, dealership owner say itÂ?s good first step.

Parts supplier, dealership owner say itÂ?s good first step.

Jim Krzyzewski, Nyloncraft president and chief executive officer, viewed FridayÂ?s announcement by President George W. Bush of a $17.4 billion bailout loan program for GM and Chrysler as a step.

Â?ItÂ?s positive; I am glad to see it,Â? he said Friday. Â?We all kind of thought it was going to happen.Â?

But he still believes itÂ?s the next 90 days that are crucial.

Â?They have three months to get their act together,Â? he said of GM and Chrysler. Â?LetÂ?s be cautious; itÂ?s not the end game. It buys some time to let everyone get done what they need to.Â?

ItÂ?s a bit early to tell how much it will help his company, he indicated, especially on the heels of announcements earlier this week that Ford and Chrysler are shutting down plants for longer than usual over the holidays.

Â?January will be a pretty quiet month,Â? Krzyzewski said.

Nyloncraft, which produces plastic parts for automakers, began a two-week shutdown at the conclusion of FridayÂ?s shifts.

In addition, its Jonesville, Mich., facility will be shut down for a month, he said, returning to work Jan. 19.

But he will still gladly accept BushÂ?s Friday announcement.

Â?ItÂ?s a much better outcome than if they had said nothing,Â? Krzyzewski said. Â?It would have been a disaster if they had done nothing.Â?

That was the take of leaders of two of the areaÂ?s larger auto dealerships earlier this week, prior to any formal announcement.

Mike Leep Sr., president of the Gurley-Leep Automotive Family, said he thought a bailout would be good for the Midwest, at the least.

Â?If we donÂ?t get that bailout, just think what 2 to 3 million people on unemployment with no chance for a job will mean,Â? he said. Â?ThatÂ?s what you would have. And Michigan, Ohio and Indiana would be the hardest hit.Â?

The thought of GM going out of business could be devastating, he indicated.

Â?We are the owners of five GM stores,Â? he said. Â?If GM were to go out of business, those stores could be closed,Â? he said.

Â?But as you go out across the country, if GM goes out and you lose those GM stores in those towns, it would be disastrous.Â?

Larry Gates, president of the Gates Automotive Group, indicated car sales would be affected if the company continued with an uncertain future.

Â?ItÂ?s everything to the Chevy dealership,Â? he said. Â?People want to know that they are buying a car from a company that will be in business. ItÂ?s as simple as that.Â?

He even believes estimates that the automakers affect 3 million jobs Â?could be light. So many businesses are affected by these manufacturing plants, itÂ?s hard to include them all,Â? he said.

He also believes itÂ?s important for American companies to have a stake in the worldwide automobile business.

Â?We havenÂ?t done too well in the U.S. being dependent on foreign sources of fuel,Â? he said. Â?I think itÂ?s been pretty clear there is some manipulation there that is organized outside this country.

Â?WhoÂ?s to say if we gave this business to the foreign countries it would not be the same.Â?

Gates also said that prior to BushÂ?s announcement he favored having the bailout be a loan with plenty of strings attached.

He believes eventually such efforts could be huge for GM.

Â?If you put GM on the same level playing field with the imports, I think they are going to compete because they are making great cars these days,Â? he said. Â?I think they would do all right and get the money paid back pretty quick.Â?

Jim Hammer, president and chief executive of Imagineering Finishing Technologies in South Bend, also was glad to see something get done, especially a plan that involves concessions.

Â?If it buys time, it is probably not a bad use of our funds,Â? said Hammer, whose South Bend-based company is involved in metal finishing and testing for the auto industry and other industries. Â?With the terms for being paid back and the concessions, that just says we are working together.

Â?From a work ethic standpoint, we have to get to a point of performance that matches up with other automakers in the world such as Honda and Toyota.Â?